Cassandra Designs makes chair cushions. The standard direct materials quantity is 1 kilogram per cushion at a cost of $2.50 per kilogram. The actual results for the production of 20,000 cushions was the purchase and use of 1.25 kilograms per cushion, at a cost of $2.40 per kilogram. Calculate the direct materials price variance and the direct materials efficiency variance.

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The Answer of Cassandra Designs makes chair cushions. The standard direct materials quantity is 1 kilogram per cushion at a cost of $2.50 per kilogram. The actual results for the production of 20,000 cushions was the purchase and use of 1.25 kilograms per cushion, at a cost of $2.40 per kilogram. Calculate the direct materials price variance and the direct materials efficiency variance.

Cassandra Designs Makes Chair Cushions